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NJ CALA Finance Exam Questions With 100% Verified Answers.

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NJ CALA Finance Exam Questions With 100% Verified Answers. Cash Basis Accounting - answerKeeping records that shows only income actually received during a fiscal period and only expenses paid during a fiscal year. *Record income when cash or check is received *Record expense when check is writ...

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  • September 29, 2024
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NJ CALA Finance Exam Questions With
100% Verified Answers.

Cash Basis Accounting - answer✔Keeping records that shows only income actually received

during a fiscal period and only expenses paid during a fiscal year.

*Record income when cash or check is received

*Record expense when check is written


Accrual Basis Accounting - answer✔Keeping records that show all income earned during a fiscal

period even though it isn't received yet and all expenses incurred during a fiscal period even

though the expenses are not yet paid

*Record income when a bill is written

*Record expense when an order is placed


Double Entry Accounting - answer✔Recording of a debit and credit for each transaction


**Debits must always equal credits**


Debits - answer✔An entry made on the left side of the account


Credits - answer✔An entry made on the right side of the account


Journals - answer✔The organization's "books" where transactions are first recorded before

posting to the general ledger.

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